The 2023 Annual Report highlights Carlyle’s record financial results and the strength of our diversified platform. We finished 2023 with significant momentum, setting us up to drive continued growth in 2024.
2023 Financial Highlights
Letter to Shareholders
Our firm finished 2023 delivering record results, including record fee related earnings (FRE) and assets under management (AUM), alongside our third best year of fundraising in the firm’s history. We thank our investing clients for the trust they put in us as their fiduciary, and the entire Carlyle team for their hard work.
In 2023, we made significant progress on our strategic initiatives, and have substantial operational leverage as we continue to drive growth heading into 2024. Alongside our year-end results, we announced a shift in our compensation strategy explicitly designed to enhance alignment across all our stakeholders—our investing clients, our employees, and you, our shareholders.
Entering 2024, we continue to diversify our platform across Global Private Equity, Global Credit and Insurance, and Global Investment Solutions, and expand our Global Wealth channel. Our deep pipeline of forward opportunities alongside continued disciplined management of expenses are strategic focus areas.
Growth remains our key priority, while executing our strategy in a disciplined manner will allow us to expand margins at the same time. We achieved significant run rate savings in 2023, and will continue to optimize the operational and capital efficiency of our business.
We also recently announced changes to our capital allocation framework and increased our share repurchase capacity to $1.4 billion. Given our strong balance sheet and positive outlook, this additional capacity provides us flexibility to continue returning excess capital to shareholders, while still investing in the business for growth.
In 2023, our investment teams around the globe demonstrated the strength of our diversified platform, performing well amid significant macroeconomic and geopolitical volatility to deliver long-term value for all our stakeholders. We believe our level of care and focus on execution excellence are a differentiating characteristic in our industry. These attributes have been a hallmark of Carlyle since we began investing more than 35 years ago and will continue to guide us forward.
We finished 2023 with significant momentum, setting us up to drive continued growth in 2024. It is worth repeating that 2023 was a record year on many fronts. We generated record FRE of $859 million, record AUM of $426 billion, a 14% increase from the prior year, and our third best year of fundraising in history, raising $37 billion, 20% higher than the prior year.
By focusing on our clients, executing with excellence, and continuing the teamwork that made us successful in 2023, we are well-positioned to deliver on our financial targets in the coming year.
Reflecting on my first year here, I am incredibly proud to be a part of this firm, and to work alongside our global leadership team and colleagues around the world. Carlyle’s founders have built an iconic brand and enduring global franchise, and I feel extremely confident in our continued success as we enter 2024.
In closing, on behalf of the entire Carlyle team, I thank you, our shareholders, for your trust and support.
